Specialty Insurer/Reinsurer WR Berkley to Offer Baby Bonds

WR Berkley has announced a new offering of baby bonds (subordinated notes) that will be priced in the next day or so.  They have a maturity in 2058.

WR Berkley has 2 businesses–one is a reinsurance business and the other is specialty insurance for commercial customers.

Currently they have 3 outstanding issues of baby bonds with long dated maturities-out in the 2055 area and all 3 issues are trading between $25.20-$25.90.

The shares will likely be investment grade so we are expecting a coupon in the 5.75%-6% area.

The preliminary prospectus is here.

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